19 June 2014

Sunsuria delays buying real estate assets from Ter

  19 June 2014

By THE STAR
PETALING JAYA: Sunsuria Bhd has delayed plans to buy real estate development assets in Selangor and Johor from its chairman and major shareholder Datuk Ter Leong Yap.
In a statement, Sunsuria said it had decided to allow its heads of agreement (HoA) in connection with its proposed acquisitions of potential land bank with a gross development value (GDV) of RM10bil to lapse.
According to banking sources, Sunsuria wants to first deliver on its existing projects before embarking on the RM10bil land acquisitions.
The source said it was likely that Sunsuria’s management wanted to demonstrate a full year of earnings from its existing projects before making a sizeable investment, as Sunsuria’s business direction had only changed to property development for barely three months.
“The proposed acquisition will now likely see a delay of six months. Thus the plans may take place in the first quarter of next year instead,” said the banker.
In an announcement to Bursa, Sunsuria said the decision to allow the HoA to lapse would enable the company to have more time and flexibility to assess the various options available in respect of the proposed acquisitions and other potential land bank acquisitions.
Sunsuria chairman Ter told StarBiz that all plans to inject landbank into the company, as well as the implementation of its rights issue were still intact.
“I am here to say that I have every intention of injecting more landbank into Sunsuria, but when the company is ready.
“Right now, let us concentrate on the delivery of the current property projects in Sunsuria, which in itself has a gross development value of some RM260mil,” said Ter.
In a statement he added: “As the executive chairman and substantial shareholder of Sunsuria, I am committed to nurture and grow Sunsuria into a premier property development company and will continue to assess and evaluate the consolidation of my private assets in Sunsuria as and when it is ready for such acquisition,”
Sunsuria’s shares dropped 11 sen to RM1.32 on volume of 2.5 million shares.
Sunsuria is set to launch Suria Residence, a freehold lifestyle serviced apartment project on a 3.55-acre land with an estimated GDV of RM260mil.
In Sunsuria’s first quarterly report with property development as its core business, the company registered a net profit of RM2.3mil for the fourth quarter ended March 31 from RM126,000 previously.
Group revenue rose nearly four-fold to RM23mil from RM4.7mil in the previous corresponding quarter. For the full-year, group net profit went up 2.6 times to RM3.6mil.

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